Product life cycle
Stage 2: Growth
o more competition.
o increased capital intensity for scale economies.
o foreign production begins.
Stage 3: Maturity
o product standardization and capital intensity.
o decline in exports from innovating country
The International Trade Questions
How do we understand the patterns of international trade?
What is the best trade policy for a government to adopt?
Is it always better to buy domestic goods? Or is it more efficient to outsource
some items and im
Training and Development of Expats
Cultural training: Seeks to foster an appreciation of the host countrys
Language training: Can improve expatriates effectiveness, aids in relating
more easily to foreign culture, and fosters a better fir
Seek best people, regardless of nationality.
o Makes the best use of firms human resources.
o Equips executives to work in a number of cultures.
o Helps build strong unifying culture and informal management network.
Figure 19.1: The Role of Human Resources in Shaping Organizational Architecture
A firms staffing policy is concerned with the selection of employees who
have the skills required to perform a particular job.
A staffing policy can be
MOST IMPORTANT: Make sure to use and define course concepts as we use
them in this course.
o Exports of goods (selling tangible goods in another country) or of services
(airlines, hotels, amusement parks,
Covers business activities that involve the transfer of resources (including
capital and people), goods, services, knowledge, skills or information across
- Government bodies
Requirements for Globalization
Relatively free movement of goods and services across national borders
Relative political and economic stability
Adequate infrastructure, especially including communication and technology
What is Globalization?
Definition: The shift toward a more integrated and interdependent world economy.
Driving motivation is usually profit-related
Often results in lower prices
Often results in higher quality
More variety and products to choos
The Samuelson Critique
Though free trade may cause (imported) items to be cheaper than if produced
at home, jobs may be lost and home country wages reduced.
Being able to purchase groceries at Wal-Mart 20% cheaper does not
necessarily make up for